By More great news for stablecoin enthusiasts as Binance, the crypto-exchange powerhouse, which is currently at the top of the food chain in terms of volume, doing nearly twice the 24-hour volume compared to that of it’s closest competitor, has announced that they are creating a new, unified stablecoin market. Full details are, however, yet to be released, but we do know that USDT will be part of the market as it is the first token on the exchange to see changes related to it.
Binance will now list USDT as USDⓈ. Binance decided to use the Unicode symbol for an encircle S to denote that it’s a stablecoin and had this to say:
“Binance has renamed the USDT Market (USDT) to now be a combined Stablecoin Market (USDⓈ). This is to support more trading pairs with different stablecoins offered as a base pair. […] Please note that USDⓈ is not a new stablecoin: it is the symbol of Binance’s new stablecoin market.”
This Means More Stablecoins As Base Pairs:
We all know that the mechanics of stablecoins are pretty straightforward. A steward holds funds in a bank account which correspond with tokens that they sell to users. Of course, the trust issue is large here, something that the trustless ecosystem of Bitcoin is apprehensive about. However, the advantages here cannot be ignored: no lengthy deposit processes from exchanges to banks for example. The ability to secure assets in a dollar-denominated currency when not trading is another notable advantage as this essentially stabilizes them.
Even More Stablecoins On The Horizon:
As it currently stands, there are several stablecoins on the market. As a group, however, these stablecoins are more than likely incapable of capturing the entire market which might bloom. Hence, Binance is expecting more stablecoins, specifically stablecoins tied to other fiat systems, IE the Euro and a bunch of Asian currencies. Binance already understands that will definitely be more stablecoins and in an effort to give their users the best experience, they’re being proactive and getting ahead of the game so that they can just add new tokens to their exchange later.
At present, the major stablecoins are Tether USD, Paxos Standard, and USD Coin. Another token that will more than likely be in the pair comes courtesy of the Ethereum world and it is known as the Maker DAO but one must note that it acts differently in functionality than simple, paired tokens. Maker boasts a number of algorithmic functions to it and commentator Emin Gun Sirer argues that it is a stable coming while others are in fact just “pegged” to a currency.
Have you invested in any stablecoin tokens? Let us know your thoughts on these tokens by commenting below.
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